Financial expert Steven Marks advises on the pros and cons of buying and renting property.

IN an ideal world we would all like to be able to own our own home. But with property prices sky-high and interest rates increasing, affording a home may seem a challenge.

Paying rent each month may seem like money down the drain. Having to pay both bills and rent means it could become difficult to save for a house and meet the demands of large monthly outgoings.

Unfortunately, with so many people unable to afford to buy, landlords are able to raise rents as well.

Of course, many people like the freedom of renting their home – move when you want without the stresses of selling your home and no repairs bills when the roof leaks or the boiler breaks down.

But buying your own home is an investment and provides a feeling of security, so it is no wonder that most people would choose to buy rather than rent.

There are many ways to escape the financial drain of renting and start investing in your own property. Mortgage advisers can explain how to make that first step onto the property ladder and how much you really need.

If you are thinking about buying your own home, calculate your finances carefully first.

When you take out a mortgage, remember that interest rate changes will affect your monthly repayments, so it is very important to consider which mortgage is best for you.

Guarantor mortgages are suitable for young professionals who are unable to cover mortgage repayments on their current income.

This mortgage allows close relatives to act as guarantors and enable first-time buyers or young professionals to take out a mortgage. An offset mortgage allows you to manage your money by linking together your savings and mortgage, allowing you to offset any savings you hold against the value of your mortgage balance.

Family members can also link their savings to their children’s mortgage, which has enabled parents to help their children step onto the property ladder.

Fixed-rate mortgages, where borrowers pay a monthly fixed amount can also be beneficial, as borrowers know exactly how much they have to pay each month and so can budget more easily.

Stephen Marks is lending and operations executive of Newcastle Building Society, which has branches throughout the North-East. For more information on these issues or any other financial queries tel: 0845 609- 0202.